An agreement has been signed by China and Malaysia to build large projects in a controversial development corridor of Borneo, according to reports.
Malaysian Prime Minister Najib Razak confirmed that the agreement could result in projects worth $11 billion in the island’s Sarawak corridor of renewable energy, which runs along its northern coast.
The deal was reportedly signed in Kuala Lumpur by the China State Grid Corporation – the country’s leading power transmission and distribution company – and Malaysia Development, an agency promoting economic development. Details of the projects have not yet been released, although the plan is said to include proposals for at least four dams, substantial coal mining and a number of plants producing aluminium, steel and glass.
According to the state government, the development will transform the economy of Sarawak by allowing it to produce competitively priced energy and encouraging investment in energy intensive industries.
